As I transition back to school I want to make sure that I’m not going into any more debt than I absolutely need, so I’m making a super school budget!
I wrote about the first steps here. I’m building on how I made my school budget based on my spending analyses.
From my spending analysis I was able to compare my spending in each category side-by-side:
|Year End 2013||Year End 2013||Q1 2014||Q1 2014|
This is a great first step, but let’s go deeper!
For each analysis I started stripping away the costs that I won’t have in school
|Year End 2013||Year End 2013||Q1 2014 *||Q1 2014|
|Spending||35929||2994.1||8565.41 (34261.64 for the year)||2855.14|
|Minus Debt repayment||31279.02||2606.58||30661.64||2555.13|
|Half the transportation costs **||22192.08||1849.34||16185||1348.75|
*The total numbers for Q1 were for 3 months (by nature of it being a quarterly review), so I extrapolated these numbers to a yearly amount (I multiplied them by 4)
** I subtracted half of the transportation costs because I will have a bus pass in school, but I am not sure if I will still use car2go/car rentals. I’m hoping this is a high estimate
From these tables I have the most important numbers: 1849.34 and 1348.75, which represent my budget without debt repayment, savings and half the transportation costs.
I then averaged these numbers to reach a modest monthly budget: 1599.04
This number is a great estimate, but does include things like entertainment and ‘extra’, which contribute an average of $106.46 and $339.54 a month respectively. I feel like the entertainment budget is modest so I will keep that, but if you take away half of the extra budget (and again, I hope I’m high-balling it), you can knock off another 169.77 from the monthly living budget to bring it to:
$1429.27 a month.
Not too shabby I think. A number that is based in reality, my lived spending experience, and does have room for all of the things I am used to spending.
Most importantly, it feels doable. And a budget needs to be doable for it to have any purpose at all!
Considering even working full time I would put over $1000/month into dept repayment and savings I would only have about 1700/month to live in a swanky downtown condo and take a car2go whenever my heart desired.
I do plan on tracking my spending in school and post monthly spending analysis as I did before. It will be a bit different since it’s not exactly a spending analysis as it will be a ‘line of credit tracker’ as I will be putting most of my school and living expenses on credit, but I feel like being just as detailed with my credit will help keep me out of trouble.